John F. Nash's Game Theory

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John F. Nash, Jr was an American mathematician mostly known for winning the Noble Prize back in 1994, the prize was for his landmark work of Economics. His differential geometry and partial different methods to equations have provided understanding into the forces that govern chance and events inside complex systems in our daily life. John’s concepts are used in market economics, computing, evolutionary biology, and artificial intelligence, accounting and military theory. He was a senior researcher mathematician at Princeton University in New Jersey, later in his life Nash, shared his Noble Memorable Prize in Eco Sciences with game theories with John Harsanyi and German mathematician Reinhard Selten . The game theory was developed to understand…show more content…The former are games in where players can force agreements and can also make treats to other players. So, they can commit themselves to specific strategies. In contrast, in a non-cooperative games there’s no such thing as a self-commitment, it’s not possible. As a usual idea for a non-cooperative game, John introduced the concept of equilibrium points, (John F.Nash, Jr, 1949) mostly known as the Nash equilibria. Nash also established their existence in all finite games and as a solution concept for a two person cooperative game, he suggested the Nash bargaining solution, The Nash bargaining situation includes two people who have the chance to come together for common benefits in more than one way. No action taken by one person without the consent of the other can affect the well-being of the other one. The first one is for games with fixed threats and the other one is for games with variable threats. Nash also showed that, in the latter case, two people finest strategies will have maximum and minimum properties. At first their effect was to inspire game theorist to develop the theories of cooperative games and non-cooperative games as nearly separate discipline and for some time to dedicate much more effort to devise alternative cooperate solution concept that further development on non-cooperative game…show more content…Nash Jr economics theory was transformed by his ideas. For us to understand both the importance of Johns work and how it would be overlooked in the history of the economics thought. John puts a whole new appearance on the competition and he drew the devotion of theoretical economist’s. They turned game theory into a tool. This young genius brought the field to execution. In Economics, the market example sheds little light on less objective methods of interactions between individuals with greater ability to influence results. For ex, even in markets with massive numbers of buyers and sellers, individuals have info that’s others do not decide how much to reveal or hide and how to interpret info bared by other. John’s explanation thoughts for games with many players provided that alternative. Economist usually assumed that each individual will act to make the most of their own objectives. John officially defined equilibrium of a non-cooperative game to be “a configuration of tactics, such that no player acting on his own can change his strategies to achieve a better outcome for himself”. The economic theory first gotten a higher level of formal analytical accuracy by using the linear algebra of prices of numbers of product distributed and mathematical practice in turn encouraged economist to define

Game Theory
Picture if you will a group of people making decisions. The decisions that are made do not have to be significant at all. They have to be just significant to the situation at hand. This concept is considered to mathematicians as Game Theory. Game Theory is broken down into tree different types of games. As stated by Thomas S. Ferguson of UCLA “There are three main mathematical models or forms used in the study of games, the extensive form, the strategic form and the coalitional form”

According to Wikipedia, game theory is a branch of applies mathematics that is used in the social sciences (mostly economics). Game theory can also be defined as a theory of competition stated in terms of gains and losses among opposing players. Game theory tries to mathematically imprison behavior in strategic situations, in which a person’s success in making choices depends on the choices of others. Traditional application of this theory attempt find equilibrium in these games, in equilibrium. Every